Mary’s Meals (A company limited by guarantee) Directors' report and financial statements for the year ended 30 November 2012

Charity number: SC022140 Company number: SC265941

Mary’s Meals: a simple solution to world hunger

Mary’s Meals: a global movement Mary’s Meals has projects in 16 countries around the world: there are also 16 countries who support the work of Mary’s Meals through fundraising and raising awareness.

At the end of our fin ancial year 2012, we were feeding 734,192 children in the 16 Countries shown.

Page 2

Directors’ report and financial statements for the year ended 30 November 2012

Contents Page

Page 3

Legal and administrative information

4

Chair's report

5

Chief Executive's report

6

Report of the Directors

7

Independent Auditors’ report to the directors

12

Consolidated statement of financial activities

14

Balance sheets

16

Group Cashflow Statement

17

Notes to the financial statements

18

Mary’s Meals: a simple solution to world hunger

Legal and administrative information Charity number

SC022140

Company registration number

SC265941

Business address Craig Lodge Dalmally Argyll PA33 1AR

Registered office Craig Lodge Dalmally Argyll PA33 1AR

Directors Kenneth Black Calum MacFarlane-Barrow Mary-Anne MacFarlane-Barrow (re-appointed 8th June 2012) Julie MacFarlane-Barrow (re-appointed 8th June 2012) Graeme Pagan (re-appointed 8th June 2012) Mark McGreevy David Clayton Dr Christian Stelzer Zeljka Markic Peter Higgins (appointed 15th March 2013)

Secretary Julie MacFarlane-Barrow Lucy MacDonald

Chief executive Magnus MacFarlane-Barrow

Independent Auditors PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors 141 Bothwell Street Glasgow G2 7EQ

Page 4

Directors’ report and financial statements for the year ended 30 November 2012

Chair’s Report for the year ended 30 November 2012 I am delighted to present the first Annual Report following our official change of name to Mary’s Meals. All my fellow directors, staff and volunteers of Mary’s Meals are fully committed to delivering our vision that every child receives one meal in a place of education each day, and the decision to change the name of the charity to better reflect the focus of our work was a unanimous one. As at 30 November 2012, we were feeding 734,192 children every school day in 16 countries across Africa, The Americas, Asia and Europe. This number has increased further since the year end. In some ways it is hard to believe that it’s been 10 years since we began serving Mary’s Meals to 200 children in Malawi as the growth in that period has been really quite amazing. Due to the generosity of our supporters, and the dedication of our staff and volunteers, the charity’s income increased by a further 14% during our 2012 year. This enabled us to continue expanding our Mary's Meals projects to reach many more of the world's poorest children. We continue to do this by working with and through the local communities in which the children live, thereby creating a sense of community ownership and responsibility rather than dependence. We believe this is critical to the success and long-term sustainability of our projects. We remain firmly committed to being good stewards of all resources entrusted to us and to keeping our costs very low. The global average cost of Mary’s Meals school feeding continues to be £10.70 per child, per year. Once again this year we remained well below our commitment to spend no more than 6% of all income on our fundraising (excluding our charity shops) and 1% on governance. I would like to express my thanks to my fellow directors for their hard work and diligence. I would also like to thank all our staff and thousands of volunteers, without whom none of this work would be possible. Most of all, I would like to thank all our supporters throughout the world, who share some of what they have, with those who need it more than they do, thus enabling the work of Mary’s Meals to happen.

David Clayton Chair

Mary’s Meals volunteers around the world

Page 5

Mary’s Meals: a simple solution to world hunger

Chief Executive’s Report for the year ended 30 November 2012 The year ended, 30 November 2012, has been one of continued growth for Mary’s Meals. By the end of the year we were providing 734,192 impoverished children with daily meals in places of education, across 16 countries, compared with 608,661 at the start of the year. Our school feeding programme in Malawi remains by far our largest and we have once again significantly expanded our operation there. By the end of the year 593,251 children, over 21% of the primary school population, were receiving daily meals. All of the food we provide is grown in Malawi thus providing huge support to the local economy. We also managed to expand our second largest programme in Liberia, where a further 60 schools are now receiving Mary’s Meals. In total 66,275 children, just under 10% of Liberia’s primary school population, receive our daily school meals here. Around half of the primary school age children in Liberia are currently out of school and we see that the introduction of Mary’s Meals has caused a particularly dramatic increase in enrolment. For example our expansion in to the Cape Mount area saw enrolment increase by over 30% within one month. In addition we also increased, more modestly, the numbers of children fed in other countries, such as Haiti, where we work though partners. This year we saw the global movement that supports Mary’s Meals grow and develop in many parts of the world. Whilst UK support continues to grow and represents 75% of our total income, growth in other countries was even stronger this year, with contributions from USA, Austria, Ireland, Germany and Croatia growing significantly. The majority of our income still comes through grassroots support from individuals, churches, community groups and schools. We also receive substantial and generous support from a number of Foundations, Trusts and businesses. This year our Backpack Project (through which people donate educational items that become ‘education starter packs’ for impoverished children who receive Mary’s Meals) was also once again very well supported with 56,258 Backpacks being shipped to Malawi, Liberia and Kenya from the UK, Germany and Austria. Across the whole organisation the majority of our daily work is done by volunteers - from those involved in organising fundraising right through to preparing the school meals. In Malawi alone over 65,000 local volunteers are involved with Mary’s Meals. Without this huge contribution from volunteers we would not be able to maintain our very low costs. Once again the number of people across the world supporting our work in so many different ways has grown. We are united around our vision - that every child receives one daily meal in their place of education. On behalf of each child who receives Mary’s Meals I want to thank every person who is playing a part in this work.

Magnus MacFarlane-Barrow Chief Executive

Page 6

Directors’ report and financial statements for the year ended 30 November 2012

The directors present their annual report together with the consolidated financial statements of the charity for the year ended 30 November 2012. The directors, who are also trustees of Mary’s Meals for the purposes of charity law and who served during the year and up to the date of this report are set out on page 4.

Management of the charity

Malawi

Structure, governance and management

Liberia

Report of the directors (incorporating the trustees’ report) for the year ended 30 November 2012

The Charity is governed by the Board of Directors. The Board meets quarterly. The composition of the Board is monitored on a regular basis to ensure that the members of the Board have the necessary skills

Day to Day management

Philippines

and expertise required to govern the Charity. A budget is set annually in advance and submitted to the Directors for approval.

The day to day running of the Charity is managed by the Chief Operating Officer, reporting to the Chief Executive and supported in the five key areas of Communications & Media, Fundraising, Overseas Aid, Operations and Finance by the following departments; Fundraising department responsible for raising donations from individuals, groups, companies and legacies b)

Thailand

a)

Programmes department coordinates new applications and is responsible for supporting and monitoring all projects.

c)

Operations department with responsibility for ensuring effective support to all other coordinates collection of Material Aid and the shipping thereof.

d)

Finance department: supports the charity and is responsible for financial reporting and management.

e)

South Sudan

departments and smooth day to day running of the organisation. This department also

Communications Department is responsible for raising awareness of our work and for all communications with supporters and with the various parts of the organisation around the

Director/trustee recruitment and induction

Retirement of Directors

Markic and Dr Christian Stelzer.

Page 7

Ukraine

In accordance with the Memorandum & Articles of Association, one third of the directors are due to retire at each AGM and are eligible to seek to be re-appointed. At the AGM in June 2012, Julie MacFarlane-Barrow, Mary-Anne MacFarlane-Barrow and Graeme Pagan retired and were reappointed. At the AGM in 2013, the following directors are due to retire: Mark McGreevy, Zeljka

Uganda

New Directors are thoroughly vetted prior to appointment. They are briefed on their legal responsibilities and supplied with a copy of The Memorandum and Articles of Association. They are advised on the aims and values of the Charity through the Vision Mission and Values Statement.

Romania

world.

Albania

Mary’s Meals: a simple solution to world hunger

Reserves Policy The policy of the charity, which is reviewed annually, is to retain sufficient funds required to meet three months running costs in respect of salaries, premises costs etc, and between 1.5 - 2 months of

Bosnia

committed project expenditure. This committed expenditure includes not only the funding of the Children's Homes in Romania, but also its commitments to providing Mary's Meals. On this basis, the charity would expect to hold minimum reserves of £1,429,000. The unrestricted

Burma

reserves at 30 November 2012 were £1,773,921. A further £1,280,546 is held in restricted Funds for ongoing established programmes as per Note 18. As shown in note 23 to the financial statements, in the first three months of 2013 a total of £1,752,500 was transferred to meet grant aid obligations. As a result, the Board is of the opinion that the balances held at the year end by the charity were prudent and necessary to ensure that commitments could be met.

Haiti

Investment powers, policy and performance In accordance with the Memorandum and Articles of Association, the directors have the power to invest in such stocks, shares, investments, and property in the UK and overseas as they see fit. The directors have considered the most appropriate policy for investing funds and have decided that surplus funds should be held in a mixture of current and investment accounts to minimise bank charges, optimise interest earned and accessibility, and minimise risk. This policy is under constant review.

Ecuador

Related Parties The charity's administration is based at Craig Lodge, which is owned and operated by the Craig Lodge Trust. The Trustees of the Craig Lodge Trust include Magnus MacFarlane-Barrow, Milona von Habsburg, Alan Brown and Monica Lynas employed by Mary’s Meals as Chief Executive, International Ambassador, Operations Manager and Financial Accountant respectively. Two of the directors of Mary’s Meals, Mr Calum MacFarlane-Barrow and Mrs Mary-Anne MacFarlane-Barrow are volunteer managers of the Craig Lodge Trust. The office accommodation is currently provided

India

free to Mary’s Meals, with the exception of a charge for a share of the direct costs such as power, heat and light. See also note 25 for further details. Basis of Consolidation The directors of Mary’s Meals are of the opinion that they demonstrate sufficient dominant influence to constitute control in respect of Scottish International Relief Malawi. The results of Scottish International Relief Malawi have been consolidated in the financial statements for the year

Kenya

ending 30th November 2012. Mary’s Meals is registered to do business in Liberia. The activities carried out by Mary’s Meals in Liberia form part of the Charity financial statements for the year ending 30th November 2012. Risk assessment

Sudan

The directors have overall responsibility for ensuring that the charity has assessed the major risks to which it is exposed, in particular to the operations and finances of the charity.

Page 8

Directors’ report and financial statements for the year ended 30 November 2012

The directors recognise that the systems in place are designed to manage rather than eliminate the risk of failure to achieve the charity's objectives. In order to improve the formal risk management process, the directors annually review the systems in place, and have:

      

identified and evaluated the risks on an ongoing basis considered the types of risk to which the charity is exposed identified the level of acceptable risk assessed the likelihood of the risks concerned materialising assessed the charity's ability to reduce the incidence and impact of risks that do materialise compared the costs of implementing controls to the benefits obtained put in place a system for monitoring and reporting on risk and details of corrective action taken

Objectives and activities a)

To provide relief for those suffering, in any part of the world, as a result of humanitarian crises or poverty, to help people escape poverty and to provide care for orphaned, abandoned and vulnerable children.

b)

To raise awareness in the UK and worldwide of world poverty issues through education.

Our vision Our vision is that every child receives one daily meal in their place of education and that all those who have more than they need, share with those who lack even the most basic things. To that end, our mission is to enable people to offer their money, goods, skills, time, or prayer, and through this involvement, provide the most effective help to those suffering the effects of extreme poverty in the world’s poorest communities. Review of the year In 2012, Scottish International Relief officially changed its name to Mary’s Meals to reflect the focus of the work being undertaken by the charity. At the heart of Mary’s Meals lies our belief in a simple idea to transform the lives of hundreds of thousands of individuals around the world. Providing a child with one daily meal in a place of education, not only feeds the child’s body, but it feeds their mind too. We believe that education is essential to breaking the cycle of poverty—for individuals, communities, and countries. Thanks to the generosity of our volunteers, supporters and donors, the number of children fed by Mary’s Meals has continued to grow every year since we began feeding 200 children in Malawi in 2002. During our financial year 2012, the number of children receiving Mary’s Meals increased by 21% from the previous year. That meant that as at 30th November 2012, we were feeding 734,192 children, one meal in a place of education every school day.

800,000

734,192

700,000 600,000 459,621

500,000 351,260

400,000 300,000 200,000 100,000

112,570 200

20,000

2002

2004

Financial Year

2006

2008

Number of Children Fed

Page 9

2010

2012

Mary’s Meals: a simple solution to world hunger

Where we work Mary’s Meals is a global movement that has projects in 16 countries across Africa, The Americas, Asia and Europe. In Malawi and Liberia, Mary’s Meals is operated and delivered directly by in-country Mary’s Meals staff. In the remainder of the countries, we work closely with partners who help us reach children in some of the poorest areas of the world, to provide them with much needed daily meals in a place of education. During our financial year 2012, we worked with 19 such partners.

Financial Review The work of Mary’s Meals is entirely reliant on the generosity of the thousands of supporters who work tirelessly and selflessly to carry out the work of Mary’s Meals. For the year to 30th November 2012, the total income of the charity was £10,009,070, which represents an increase of 14% when compared with the previous year. Once again, by far the greatest proportion, almost 78%, was received through voluntary income, in the form of donations and grant income. The cost of generating trading income during the year was £204,662, resulting in total income net of trading costs of £9,804,408. The trading costs are associated with the operation of 7 shops throughout Scotland, most of which are run by volunteers. The shops sell and recycle donated goods, generating income of £401,915 which is included in the income figures above. The total expenditure for the same period was £9,950,874.

Proportion of income spent during 2012 NB: does not total 100% as there was a small surplus unspent at year end

4.2%

We spent £9,248,389 on our charitable activities, or 94.3% of total income net of trading costs, so once again we were able to maintain our commitment to spend at least 93p of every £1 received on our charitable activities. As outlined in Note 7 to the Financial Statements, it cost £6,884,425 to provide Mary’s Meals in all 16 countries where we work. The number of children fed during the year rose from 608,661 at the start of the year to 734,192 on 30th November 2012, an increase of almost 21%. The actual cost of feeding a child for our financial year 2012 was £10.25 (using the average number of children fed during the year of 671,427). This was less than the budgeted level of £10.70, as we reached more children during the year than originally planned.

0.9%

94.3%

Charitable Activities

Fundraising

Governance

Future Plans Available funds at the end of 2012 have enabled us to reach more children in Haiti, India, South Sudan and Thailand during the first half of 2013. Further expansions are also planned during 2013 in our two biggest programmes in Malawi and Liberia. We continue to work to raise awareness around the world in new ways, in order to gain more support. During 2012, thanks to the generosity of a supporter, we were able to make a documentary, Child 31, about our work and the plight of some of the children who receive Mary’s Meals. The film has been screened across the world, televised in two countries and widely distributed to donors, volunteers, schools and churches to reach as many people as possible. Towards the end of 2012, we began working with The Bridgespan Group to develop a 3-year growth plan covering the period 2013-2016. The growth plan focuses on three key elements: further expansion of our programmes, growth of the global movement and developing the organisation.

Page 10

Directors’ report and financial statements for the year ended 30 November 2012

Statement as to disclosure of information to auditors In so far as the directors are aware: -

there is no relevant audit information of which the charitable company's auditors are unaware; and

-

the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Statement of trustees’ responsibilities The trustees (who are also directors of Mary’s Meals for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently;  observe the methods and principles in the Charities SORP;  make judgments and estimates that are reasonable and prudent;  state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

 

there is no relevant audit information of which the charitable company’s auditor is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Independent Auditors The directors approved the reappointment of PricewaterhouseCoopers LLP as auditors of Mary’s Meals on 8 June 2012.

On behalf of the Board David Clayton

Page 11

Mary’s Meals: a simple solution to world hunger

Independent Auditors’ report to the members and trustees of Mary’s Meals We have audited the financial statements of Mary’s Meals for the year ended 30 November 2012 which comprise the Group and Parent Charitable Company Statements of Financial Activities, the Group and Parent Charitable Company Balance Sheet, the Group Cash Flow Statement, the Accounting Policies and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Respective responsibilities of trustees and auditors As explained more fully in the Trustees’ Responsibilities Statement set out on page 11, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the charity’s members and trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and the Companies Act 2006 and regulations made under those Acts (regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and Chapter 3 of Part 16 of the Companies Act 2006) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors’ Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements:



give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 30 November 2012 and of the group’s and the parent charitable company’s incoming resources and application of resources, including the group’s and the parent charitable company’s income and expenditure and cash flows, for the year then ended;



have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and



have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Page 12

Directors’ report and financial statements for the year ended 30 November 2012

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:



adequate accounting records have not been kept by the parent charitable company or returns adequate for our audit have not been received from branches not visited by us; or



the parent charitable company’s financial statements are not in agreement with the accounting records or returns; or



certain disclosures of trustees’ remuneration specified by law are not made; or



we have not received all the information and explanations we require for our audit.

Lindsey Paterson (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Glasgow 14 June 2013 PricewaterhouseCoopers LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

a) The maintenance and integrity of the Mary’s Meals website is the responsibility of the trustees; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Page 13

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee) Consolidated Statement of Financial Activities (incorporating the income and expenditure account) for the Year ended 30 November 2012 Mary’s Meals - Group

Company No

SC265941

(A company limited by guarantee)

Charity No

SC022140

for the Year ended 30 November 2012

Notes

Unrestricted

Restricted

2012

2011

funds

funds

Total

Total

£

£

£

£

Incoming resources Incoming resources from generated funds: Voluntary income

2

4,461,241

3,309,337

7,770,578

6,802,322

Activities for generating funds

3

1,886,016

7,885

1,893,901

1,560,070

8,839

726

9,565

15,154

360

-

360

5,703

334,666

-

334,666

393,072

6,691,122

3,317,948

10,009,070

8,776,321

4

412,837

-

412,837

403,663

5

204,662

-

204,662

198,968

1,706,799

7,541,590

9,248,389

7,413,314

81,383

3,603

84,986

75,387

Total resources expended

2,405,681

7,545,193

9,950,874

8,091,332

Net incoming/(outgoing) resources

4,285,441

(4,227,245)

58,196

684,989

(4,574,984)

4,574,984

-

-

(289,543)

347,739

58,196

684,989

937,860

2,981,398

2,237,956

14,873

58,453

3,054,467

2,981,398

Investment income Incoming resources from charitable activities Other incoming resources – Gift Aid tax reclaimed

Total incoming resources

Resources expended Costs of generating funds: Cost of generating voluntary income Fundraising trading: cost of goods sold and other costs Charitable activities Governance costs

6, 7 8

before transfers

Transfers Net movement in funds Net income/(expenditure) for the year Fund balances brought forward Currency gain/(loss) on revaluation Fund balances carried forward

2,043,538 19,926 1,773,921

(5,053) 1,280,546

All gains and losses recognised in the year are included in the Statement of Financial Activities. The notes on pages 17 to 35 form an integral part of these financial statements.

Page 14

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee) Statement of Financial Activities (incorporating the income and expenditure account) for the Year ended 30 November 2012 Mary’s Meals - Charity

Company No

SC265941

(A company limited by guarantee)

Charity No

SC022140

for the Year ended 30 November 2012 Unrestricted

Restricted

2012

2011

funds

funds

Total

Total

£

£

£

£

Incoming resources Incoming resources from generated funds: Voluntary income

4,461,241

3,294,669

7,755,910

6,781,095

Activities for generating funds

1,886,016

7,885

1,893,901

1,560,070

8,839

-

8,839

14,895

360

-

360

520

334,666

-

334,666

393,072

6,691,122

3,302,554

9,993,676

8,749,652

412,837

-

412,837

403,663

204,662

-

204,662

198,968

1,700,242

7,674,629

9,374,871

7,525,558

81,383

70,344

10,073,753

8,198,533

Investment income Incoming resources from charitable activities Other incoming resources – Gift Aid tax reclaimed

Total incoming resources

Resources expended Costs of generating funds: Cost of generating voluntary income Fundraising trading: cost of goods sold and other costs Charitable activities Governance costs

81,383

Total resources expended

2,399,124

7,674,629

Net incoming/(outgoing) resources

4,291,998

(4,372,075)

(4,541,239)

4,541,239

(249,241)

169,164

(80,077)

551,119

before transfers

Transfers

-

-

Net movement in funds Net income/(expenditure) for the year Fund balances brought forward Currency gain/(loss) on revaluation Fund balances carried forward

Page 15

2,003,236 19,926 1,773,921

803,991 (5,053) 968,102

(80,077)

551,119

2,807,227

2,199,799

14,873

56,310

2,742,023

2,807,228

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee)

Balance sheets as at 30 November 2012

Notes

Group

Group

Charity

Charity

2012

2011

2012

2011

£

£

£

£

14

178,141

211,947

112,041

30,455

Stocks

15

119,630

-

119,630

-

Debtors

16

267,687

94,327

210,170

73,648

2,585,709

2,855,713

2,353,133

2,786,943

2,973,026

2,950,040

2,682,933

2,860,591

Fixed Assets Tangible assets

Current Assets

Cash at bank and in hand

Liabilities Creditors: amounts falling due within one year

17

(96,700)

(180,589)

(52,951)

(83,818)

Net current assets

2,876,326

2,769,451

2,629,982

2,776,773

Net assets

3,054,467

2,981,398

2,742,023

2,807,228

1,280,546

937,860

968,102

803,991

Unrestricted income funds

1,773,921

2,043,538

1,773,921

2,003,237

Total charity funds

3,054,467

2,981,398

2,742,023

2,807,228

The funds of the charity Restricted income funds

18, 19

The financial statements were approved by the Board of Directors on 14th June 2013 and signed on its behalf by

David Clayton Director

Page 16

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee)

Group Cashflow Statement for the Year Ended 30 November 2012 2012

2011

£

£

Operating Activities (308,169)

Net cash (outflow)/inflow from operating activities (Note a)

731,516

Returns on investments and servicing of finance Deposit Interest received

9,565

15,154

-

Interest Paid

(1,786)

9,565

13,368

13,377

(61,991)

Capital Expenditure and Financial Investment Payments to acquire tangible fixed assets Loss on disposal of tangible fixed assets Receipts from sales of tangible fixed assets

-

-

350

-

13,727

(284,877)

Net cash (outflow)/inflow before management of liquid resources and financing

Balances at 1 December 2011

(61,991)

682,893

2,855,713

2,114,367

Effect of foreign exchange differences

14,873

58,453

Cash (outflow)/inflow from financing

(284,877)

682,893

Balances at 30 November 2012

2,585,709

2,855,713

NOTES

Reconciliation of net incoming/(outgoing) resources to net cash inflow/(outflow) from operating activities

Net incoming resources before revaluations (Increase)/decrease in Debtors Deposit Interest received Interest Paid Depreciation Charge Loss on disposal of fixed assets Increase in Stock Decrease in Creditors/ Accruals Net Cash (outflow)/inflow

Page 17

2012

2011

£

£ 58,196 (173,360) (9,565)

684,990 36,375 (15,154)

-

1,786

20,349

67,343

-

897

(119,630) (84,159) (308,169)

(44,721) 731,516

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 1.

Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year. Basis of accounting Mary’s Meals is an incorporated charity. The financial statements have been prepared on the going concern assumption and accruals concept and provide information that is relevant, reliable, comparable and understandable. The financial statements are prepared under the historical cost convention and in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities' issued in March 2005 (SORP 2005), applicable accounting standards in the United Kingdom, the Companies Act 2006, the Charity Accounts (Scotland) Regulations 2006 and the Charities and Trustee Investment (Scotland) Act 2005.

1.2

Basis of consolidation

The financial statements consolidate the results of the charity, including branches in Bosnia and Liberia, and its subsidiary Scottish International Relief Malawi, on a line-by-line basis. Scottish International Relief Malawi: This entity is closely associated with Mary’s Meals and implements its projects in Malawi. In accordance with best practice, the financial statements of Scottish International Relief Malawi have been consolidated in the financial statements. This is based on the guidelines in the Statement of Recommended Practice for charities, that where there is dominant influence due to control the financial statements should be consolidated. 1.3

Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included. Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold. Grants, including grants for the purchase of fixed assets, are recognised in full in the statement of financial activities in the year in which they are receivable. Income from the charity shops is included in the year in which it is receivable. Income from investments is included in the year in which it is receivable. Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

Page 18

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 1.4

Resources expended

All expenditure is included on an accruals basis and is recognised where there is a legal or constructive obligation to pay. Any costs directly attributable to specific categories have been included in those cost categories in the SOFA. Other costs, which are attributable to more than one activity, are apportioned across categories on the basis of an estimate of the proportion attributable. The Charity is registered for vat and all expenditure is shown inclusive of any irrecoverable vat applicable. Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity's shops. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management. Governance costs are those incurred directly in connection with compliance with constitutional and statutory requirements, together with a proportion of salary costs relating solely to the strategic management of the charity. 1.5

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

1.6

Leasehold properties

-

Straight line over the life of the lease

Plant and machinery

-

15% straight line

Fixtures, fittings and equipment

-

15% straight line

Motor vehicles

-

Motorbikes 33% straight line / Vehicles 25% straight line

Computer Equipment

-

33% straight line

Stocks

Stock is valued at the lower of cost or net realisable value.

Page 19

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 1.7

Defined contribution pension schemes

The charity has in place a group pension scheme to make available pension provision to all employees. Contributions in respect of the company's defined contribution pension scheme are charged to the income and expenditure account for the year in which they are payable to the scheme. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments at the year end. 1.8

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at an appropriate rate of exchange. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the statement of financial activities. 1.9

Tax reclaimed on gift aid

Tax reclaimed on the basis of donations made under gift aid during the year is recognised in the year in which the donation was made. Tax recovered is normally credited to unrestricted funds, unless material amounts are recovered from specific restricted donations. 1.10

Value of distributed goods

All donated goods which the charity sends abroad are evaluated to establish how it can maximise the value of the gift, except where appeals are made specifically for items to send overseas i.e. school backpacks. A wide variety of goods are donated to the charity and sent overseas. In placing a value on these items, the following factors are taken into account: a)

the purchase price or market value for new/unused items

b)

the price of an equivalent substitute in the recipient area

c)

the income which could be generated if the goods were sold in the UK

d) the depreciation of second hand goods, or value added through reconditioning or checking by volunteers. 1.11 Transfers between Funds Transfers from unrestricted to restricted funds enable Mary’s Meals to continue to fund projects furthering their charitable activities in different countries using donations to the general fund. Restricted funds are held for each country where Mary’s Meals performs its Charitable Activities. 1.12 Operating Leases Operating leases held relate to rental leases for shops. These are accounted for in the SOFA on a straight line basis over the life of the lease.

Page 20

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 2.

Voluntary Income

The consolidated statement of financial activities includes the results of the charity’s subsidiary, Scottish International Relief Malawi. The summary financial performance of the Group is:

Donations Unrestricted Donations

Unrestricted funds

Restricted funds

£ 3,621,931

2012 Total

£

2011 Total

-

£ 3,621,931

£ 3,304,991

East Africa Emergency Mary's Meals Malawi Romania Houses Malawi other

-

128,756 1,217,399 20,457 -

128,756 1,217,399 20,457 -

214,998 903,795 21,868 208

Mary's Meals Liberia Mary's Meals Bosnia Mary's Meals Uganda Mary's Meals Ukraine

21,206 -

222,000 93 2,169

222,000 21,206 93 2,169

133,305 4,295 2,372

-

61,430 1,409 638 7,421

61,430 1,409 638 7,421

76,333 4,283 7,622

211,447

1,445 4,937 19,975 28,866 -

1,445 4,937 19,975 28,866 211,447

1,680 5,750 4,565 165,307

3,854,584

1,716,995

5,571,579

4,851,372

Mary's Meals Haiti Mary's Meals Philippines Mary's Meals Albania Mary's Meals India Mary's Meals Sudan Mary's Meals Ecuador Mary's Meals Kenya Mary's Meals Benin Legacies received

Included in the above figures are amounts raised by fundraising organisations outwith the UK. Some of the major areas are noted below: Mary's Meals Bosnia 22,533 Mary's Meals Croatia Mary's Meals Germany Mary's Meals Ireland

66,275 294,386 104,058

Mary's Meals Italy Mary's Meals Netherlands Mary's Meals U.S.A. Abu Dhabi Group

9,003 8,500 467,745 23,000

Austrian Groups Australian Groups

351,505 33,324 1,380,329

Page 21

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012

Grants and Trusts

Unrestricted

Restricted

2012

2011

funds

funds

Total

Total

£

£

£

£

Artemis Trust

-

50,588

50,588

41,000

Band Aid Trust

-

100,000

100,000

171,208

Bannatyne Trust

-

120,000

120,000

120,000

Fondation Eagle

-

102,230

102,230

-

Garfield Weston Trust

-

150,000

150,000

50,000

Lancaster Foundation

-

114,196

114,196

91,830

Liechtenstein Red Cross

-

170,908

170,908

377,684

Maitri Trust

-

395,608

395,608

-

Medicor Foundation

-

-

-

176,400

Moondance Foundation

400,000

-

400,000

-

Park House Charitable Trust

100,000

-

100,000

200,000

-

289,216

289,216

356,486

106,657

99,596

206,253

366,342

606,657

1,592,342

2,198,999

1,950,950

Scottish Government Other grants

Total Voluntary Income

Total Voluntary income Donations Grants and Trusts

Unrestricted

Restricted

2012

2011

funds

funds

Total

Total

£

£

£

£

3,854,584

1,716,995

5,571,579

4,851,372

606,657

1,592,342

2,198,999

1,950,950

4,461,241

3,309,337

7,770,578

6,802,322

Page 22

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 3.

Activities for generating funds

Unrestricted

Restricted

2012

2011

funds

funds

Total

Total

£

£

£

£

Shop income

401,915

-

401,915

370,457

Recycling

73,941

-

73,941

75,249

Fundraising events

33,480

7,885

41,365

43,280

2,657

-

2,657

2,899

40,841

-

40,841

42,678

1,333,182

-

1,333,182

1,025,507

1,886,016

7,885

1,893,901

1,560,070

Collections Raffles Value of donated Aid

4.

Costs of generating voluntary income

Donations and grants

Analysis by cost Staff costs

Unrestricted

2012

2011

funds

Total

Total

£

£

£

412,837

412,837

403,663

412,837

412,837

403,663

2012

2011 264,420

254,778

2,753

5,423

Office costs

77,013

79,304

Advertising and publicity

12,957

7,041

9,497

18,798

Motor and travel

25,573

15,100

Sundry costs

14,155

17,894

Depreciation

6,469

5,325

412,837

403,663

Recruitment, Staff training and volunteer costs

Website costs

Page 23

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012

5.

Fundraising trading

Shop costs

Analysis by cost

Unrestricted

2012

2011

funds £

Total £

Total £

204,662

204,662

198,968

204,662

204,662

198,968

2012

2011

£ Staff costs

£ 83,046

77,532

103,364

95,714

11,192

18,707

133

246

Transport and vehicle costs

1,242

2,089

Depreciation

5,685

4,680

204,662

198,968

401,915

370,457

73,941

75,249

(204,662)

(198,968)

271,194

246,738

Shops; rent, rates and insurance Office costs, including phone and IT Repairs and maintenance

Retail shop contribution Income from sale of donated goods Recycling income Costs of realisation

Page 24

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 6.

Costs of charitable activities – by fund type Unrestricted funds £ -

Restricted funds £ 6,884,425

2012 Total £ 6,884,425

2011 Total £ 5,337,519

1,422,446 284,353 -

80,752 576,413

80,752 1,422,446 284,353 576,413

89,286 1,117,025 268,026 601,458

1,706,799

7,541,590

9,248,389

7,413,314

Mary's Meals Children's Homes Backpacks and shipped aid Raising awareness Emergency aid

7.

Costs of charitable activities – by activity

Mary's Meals Children's Homes Backpacks and shipped aid Raising awareness Emergency aid

Activities undertaken directly £ 4,707,527 1,379,671 284,353 1,664,024

Grant funding activities £ 1,862,574 77,317 551,892 7,199,310

Support costs £ 314,324 3,435 42,775 24,521 385,055

2012 Total £ 6,884,425 80,752 1,422,446 284,353 576,413 9,248,389

2011 Total £ 5,337,519 89,286 1,117,025 268,026 601,458 7,413,314

Included in shipped aid is expenditure as follows:

Kenya Malawi Liberia Backpacks carriage charge

8.

Shipping 8,817 26,690 2,900

Aid value 161,424 913,553 258,205

Total 170,241 940,243 261,105

8,082 46,489

1,333,182

8,082 1,379,671

Governance costs - Group

Auditors' remuneration Professional - Legal fees Other expenses, including salary allocation Bank charges Subscriptions

Unrestricted funds £ 8,636 3,272 66,780 2,290 405 81,383

Page 25

Restricted funds 3,603 -

2012 Total £ 12,239 3,272 66,780 2,290 405

2011 Total £ 10,505 973 61,601 1,786 522

3,603

84,986

75,387

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012

9.

Analysis of support costs

Staff costs Support Services for programme management

Mary's

Children's

Emergency

Shipped

2012

2011

Meals

Homes

Relief

Aid

Total

Total

£

£

£

£

£

18,438

38,377

236,947

2,583

£

296,345

247,832

5,965

66

469

-

6,500

30,000

Premises costs

23,634

260

1,858

3,398

29,150

30,274

Motor and travelling costs

25,389

280

1,996

-

27,665

34,865

-

-

-

-

-

2,943

16,457

181

1,294

1,000

18,932

19,559

5,218

57

410

-

5,685

4,680

714

8

56

-

778

4,006

314,324

3,435

24,521

42,775

385,055

374,159

Accountancy charges Office expenses, including phone and IT Depreciation and impairment Advertising, publicity and subscriptions

Supports Costs are allocated to Shipped Aid as direct costs of Staff involved and Running Costs of the Aid Warehouse. The balance of support costs are allocated across the other activities in proportion to project expenditure.

Page 26

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 10.

Net incoming resources of the year Group

Group

2012

2011

£

£

Net incoming resources is stated after charging: Depreciation and other amounts written off tangible fixed assets Auditors' remuneration

112,987

74,541

12,239

10,505

14,873

58,453

and after crediting: Profit on foreign currencies 11.

Employees

Employment costs Wages and salaries Social security costs Other pension costs Other costs - training and volunteer costs

2012 £ 1,120,485 73,977 60,010 30,730 1,285,203

2011 £ 983,320 66,937 46,975 11,853 1,109,085

The Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005) requires that charities that are subject to a statutory audit show the number of employees whose emoluments for the year exceed £60,000 (excluding employer pension costs). No employee received emoluments of more than £60,000 during the year to 30th November 2012.

Number of employees The average monthly numbers of employees (excluding the directors) during the year, was as follows

F/T Equivalent Direct delivery Support Fundraising Shops and Recycling Material Aid and Raising awareness Governance

2012 Number 127 10 10 4 7 2 160

2011 Number 55 8 9 4 7 2 85

The number of employees has increased significantly as a result of the inclusion of Liberia within the Charity accounts for 2012. For details of Directors Remuneration and Expenses see note 24.

Page 27

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 12.

Pension Costs

The company operates a defined contribution pension scheme in respect of staff. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £50,884 (2011 - £37,638). Scottish International Relief Malawi contributes on behalf of its local employees, a mandatory and defined contribution Pension scheme prescribed by the Government of Malawi under the pension act of 2010 which came into effect on 1st June 2011. Mary's Meals contributes 7.5% of employees’ salary while the employees contribute 5%. Employers are required under the Act to remit aggregated contributions to any of the licensed Pension Administrators. The charge in 2012 was £7,980 (2011 – £5,182).

13.

Taxation

The charity’s activities fall within the exemptions afforded by the provisions of the Corporation Tax Act 2010. Accordingly, there is no taxation charge in these financial statements.

14.

Tangible fixed assets – group and charity

Charity

Cost At 1 December, 2011

Long

Fixtures

leasehold property

Plant and machinery

fittings and equipment

Motor vehicles

Computer Equipment

£

£

£

£

£

6,083

25,413

-

-

6,083

25,413

Released on disposals

4,868 1,215 -

At 30 November, 2012

Additions Disposals At 30 November, 2012

62,031

Total £ 180,241

6,714

80,000

150,795 -

-

67,104

157,509

80,000

336,109

13,759 2,906 -

52,703 7,360 (450)

6,714 56,770 -

71,742 6,481

149,786 74,732 (450)

6,083

16,665

59,613

63,484

78,223

224,068

-

8,748

7,491

94,025

1,777

112,041

1,215

11,654

9,328

-

8,258

30,455

5,873 (800)

-

156,668 (800)

Depreciation At 1 December 2011 Charge for the year

-

Net book values At 30 November, 2012 At 30 November 2011

Page 28

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 Group

Long leasehold property £

Cost

Plant and machinery £

Fixtures fittings and equipment £

Motor vehicles £

Computer Equipment £

Total £

At 1 December 2011 Exchange rate Additions Disposals

6,083 -

25,413 -

62,031 5,873 (800)

335,689 (230,974) 216,019 -

90,066 (5,271) 976 -

519,282 (236,245) 222,868 (800)

At 30 November, 2012

6,083

25,413

67,104

320,734

85,771

505,105

Depreciation At 1 December 2011

4,868

13,759

52,703

159,822

76,183

307,335

Exchange rate Charge for the year Released on disposals

1,215 -

2,906 -

(90,171) 93,514 -

(2,737) 7,992 -

(92,908) 112,987 (450)

At 30 November, 2012

6,083

16,665

59,613

163,165

81,438

326,964

-

8,748

7,491

157,569

4,333

178,141

1,215

11,654

9,328

175,867

13,883

211,947

7,360 (450)

Net book values At 30 November, 2012 At 30 November 2011 15.

Stocks Group

Charity

Charity

2012

2011

2012

2011

£

£

£

£

119,630

Stock 16.

Group

-

119,630

-

Debtors Group

Group

Charity

Charity

2012

2011

2012

2011

£

£

£

£

Trade debtors

245,958

5,685

188,441

5,685

Other debtors

21,729

88,642

21,729

67,963

267,687

94,327

210,170

73,648

2012 £ 33,925 20,773 42,002

2011 £ 84,046 19,917 76,626

2012 £ 11,197 20,773 20,981

2011 £ 15,892 19,917 48,009

96,700

180,589

52,951

83,818

17.

Creditors: amounts falling due within one year

Trade creditors Other taxation and social security Accruals and deferred income

Page 29

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012

18.

Analysis of net assets between funds Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

Fund balances at 30 November 2012 as represented by: Tangible fixed assets Current assets

24,911

153,230

178,141

1,801,462

1,171,564

2,973,026

(52,452)

Current liabilities

(44,248)

1,773,921

19.

3,054,467

Unrestricted and Restricted funds

At

Group Unrestricted funds Restricted Funds Total

(96,700)

1,280,546

1 December

Incoming

Outgoing

2011

resources

resources

Transfers

£

£

£

£

2,043,538

6,691,122

Gain on

At

Currency

30 November

Revaluation £

2,405,681

(4,574,984)

937,860

3,317,948

7,545,193

4,574,984

2,981,398

10,009,070

9,950,874

-

2012 £

19,926 (5,053) 14,873

1,773,921 1,280,546 3,054,467

Page 30

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 Restricted funds At

At

1 December

Incoming

Outgoing

2011

resources

resources

Transfers

2012

£

£

£

£

£

30 November

Mary's Meals Malawi

281,040

2,070,778

3,889,303

2,177,751

640,266

Mary's Meals Haiti

255,416

62,680

631,212

313,116

590,280

Mary's Meals Liberia

84,737

498,019

1,054,686

1,062,210

Mary's Meals Other Regions

17,838

365,402

1,317,880

984,640

50,000 -

Emergency Relief East Africa

298,829

264,612

574,074

10,633

Emergency Relief Philippines

-

-

2,339

-

Children's Homes Romania

-

56,457

80,752

2,339 24,295

937,860

3,317,948

7,550,246

4,574,984

1,280,546

-

Mary’s Meals Funds – Other Regions-includes the following specific areas: At

At

1 December

Incoming

Outgoing

2011

Resources

Resources

Transfers

30 November 2012

£

£

£

£

£

Albania

-

638

9,702

9,064

Benin

-

28,866

32,256

3,390

-

-

Bosnia

-

-

11,260

11,260

Burma

-

-

23,129

23,129

-

Ecuador

-

4,937

7,164

2,227

Kenya

-

205,930

438,410

232,480

-

17,838 -

101,445 -

238,656 30,969

169,373

50,000 -

Sudan Thailand Uganda

-

93

264,677

30,969 264,584

Philippines

-

1,409

19,980

18,571

-

Ukraine

-

2,169

67,888

65,719

50,000

India

Page 31

-

19,915

173,789

153,874

17,838

365,402

1,317,880

984,640

-

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012

21.

Financial commitments

At 30 November 2012 the company had annual commitments under non-cancellable operating leases as follows:

Expiry date Within one year Between one and five years In over five years

22.

2012 £

2011 £

47,214 28,000 75,214

47,214 28,000 75,214

General commitments

The company operates a defined contribution pensions scheme on behalf of its employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The annual pension commitment under this scheme is for contributions of £50,884. At 30 November 2012, an amount of £0 was accrued in the financial statements (2011 - £4,085). Scottish International Relief Malawi contributes on behalf of its local employees, a mandatory and defined contribution Pension scheme prescribed by the Government of Malawi under the pension act of 2010 which came into effect on 1st June 2011. Mary's Meals contributes 7.5% of employees’ salary while the employees contribute 5%. Employers are required under the Act to remit aggregated contributions to any of the licensed Pension Administrators. The charge in 2012 was £7,980. At 30 November, an amount of £1,752 was accrued in the financial statements (2011 - £7,220). 23.

Committed resources

In the first three months of the year to 30 November 2013, the following amounts of direct grant aid were sent overseas: £ December 2012

700,387

January 2013

621,068 431,045

February 2013

1,752,500

Over the year to 30 November 2013, Mary’s Meals is committed to a grant aid programme of £8.028m, of which £4.104m is committed to Malawi. The charity is committed to supporting the running of Iona House, Bannatyne House, and Rozis House in Romania. Included in the above commitments is annual expenditure in the region of £77,000 (2011 - £80,000) in respect of the Children's Homes in Romania.

Page 32

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012

24.

Transactions with directors

In accordance with the Memorandum and Articles of Association, directors may only receive remuneration for services undertaken in the administration of the charity provided that it is authorised by the Board, is within the limits laid down, and as long as a majority of the Board members are acting without remuneration. Reimbursements of travel expenses were paid during the year to the following Directors:-. M McGreevy

£208

Conflicts of Interest The company operates a policy to deal with potential conflicts of interest. This includes maintaining a register of board members/directors interests, which details any contractual or financial relationship or position of authority with outside companies, firms or organisations. Whenever a board member/director has an interest in any item discussed by the Board, he/she takes no part in the discussions or decision making process.

Page 33

Mary’s Meals: a simple solution to world hunger

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 25.

Related party transactions

Connected party transactions The chief executive of the charity, Magnus MacFarlane-Barrow, is closely related to a number of the directors on the Board. His remuneration is determined by an independent committee whose membership is made up of unrelated parties. For the year to 30 November 2012, his gross remuneration amounted to £31,044 (2011: £30,239), and he received reimbursement of expenses amounting to £0 (2011: £912). He is a member of the charity pension scheme. Craig Lodge Trust Mary’s Meals operated during the year on a rent free basis from property owned by the Craig Lodge Trust and contributes to the running of the property by paying for power usage and a share of similar overheads. These costs are included in the amount shown below. The Craig Lodge Trust is run by Calum and Mary-Anne MacFarlane-Barrow who are directors of Mary’s Meals. During the year, Craig Lodge Trust provided goods and services i.e. accommodation, meals, and overheads, amounting to £6,544. These were provided on an arm's length basis

Partnership Organisations Mary’s Meals works with various organisations to enable it to best achieve its objectives; the main entities are as follows:

Projekt Albanien (Albania) Pazaric Institute for Child and Youth Protection (Bosnia) Soeurs de Marie Medaille Miraculeuse (Benin) Maryknoll Myanmar (Burma) Fundacion Cristo Misionero Orante (Ecuador) Hands Together (Haiti) Caritas(Haiti) Board for Research Education and Development (BREAD) (India) The Way Christian Ministries (Kenya) The Diocese of Lodwar (Kenya)

Scottish International Relief Malawi The Medjugorje Peace Centre (Philippines) Rhema Foundation (Romania) Amsudan/Comboni Missionaries (South Sudan) St Vincent De Paul (Sudan) Living Water Centre (Thailand) Centre for Pa Ka Yo (Thailand) Emmaus Foundation (Uganda) De Paul International (Ukraine) Gift of the Givers (Somalia)

Mary’s Meals Overseas Scottish International Relief Malawi is an independently constituted body whose main function is to implement Mary’s Meals projects in Malawi, but it is free to fundraise from other sources. Mary’s Meals is represented on the board of this organisation. Mary’s Meals is registered in Liberia, as an overseas organisation working in the country. Supporters of Mary’s Meals in Austria, Canada, Croatia, Germany, Ireland, Italy, Netherlands, Portugal and the U.S.A. have set up groups for the sole purpose of fundraising for and supporting Mary's Meals. Supporters of Mary’s Meals in countries such as Abu Dhabi, Australia and Spain have groups that, as part of their purpose, raise funds for and support Mary's Meals. Mary’s Meals has registered branches in Bosnia and Herzegovina and Liberia. Mary's Meals USA continued active fundraising during the year, and project funding was transferred directly to Mary's Meals projects in Malawi, Liberia and Haiti.

Page 34

Directors’ report and financial statements for the year ended 30 November 2012

Mary’s Meals (A company limited by guarantee) Notes to financial statements for the year ended 30 November 2012 26.

Company limited by guarantee

Mary’s Meals is a company limited by guarantee and accordingly does not have a share capital. Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member. 27.

Ultimate Parent Undertaking and Controlling Party

The ultimate parent undertaking and controlling party is Mary’s Meals, a company incorporated in Scotland. The consolidated financial statements of Mary’s Meals can be obtained from: Mary’s Meals Craig Lodge Dalmally Argyll PA33 1AR

Page 35